Africa’s share of global foreign direct investment (FDI) projects has reached the highest level in a decade, according to Executing Growth, EY’s 2014 Africa Attractiveness Survey (https://www.ey.com/za).
The report shows a dramatic improvement in investor perception about the attractiveness of Africa, but stubborn perception gap remains between investors already operating on the continent and those who are not.
The overall survey results show that Africa has moved from third last position in 2011, to become the second-most attractive investment destination in the world, behind North America. Sixty percent of survey respondents said that there had been an improvement in Africa’s investment attractiveness over the past year, up four percentage points from last year’s survey.
However, there remains a stubborn perception gap between those already operating on the continent and those who are not yet present. For the first time, this year’s survey shows that companies with a presence on the continent perceive Africa to be the most attractive investment destination in the world. In stark contrast, those with no business presence in Africa still view the continent as the world’s least attractive investment destination.
Seventy-three percent of those who are already established in the region believe Africa’s attractiveness has improved over the past year versus 39% who are not established.
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